Many Government departments argued against budget cuts and instead pitched for significant increases in spending as part part of the Government’s latest comprehensive review of expenditure.
The departmental submissions to the review and the responses of the Department of Public Expenditure and Reform, published yesterday, give an insight into the behind-the-scenes manoeuvres in the run-up to the budget.
As part of the review, carried out over the summer, departments were asked by the Department of Public Expenditure and Reform to come up with options for living within set spending ceilings drawn up last year. They were also asked to produce proposals on how they would manage if spending was reduced by 5 per cent.
Minister for Public Expenditure and Reform Brendan Howlin told the Dáil the primary purpose of the comprehensive review of expenditure was to provide an evidence base for Government decisions on ministerial expenditure ceilings for the next three years.
These three-year ceilings were set out in tables published by the Minister on budget day last Tuesday.
Analysis
In addition to analysis carried out by various Government departments, more than 60 submissions were received from individuals and representative bodies.
The largest demands came from some of the bigger spending Government departments such as Health and Education.
The Department of Health wanted its €500 million overrun for this year carried over into its core funding for 2015. In addition it said it needed about €200 million for each of the next three years to deal with demographic pressures and other demands.
The department warned it could not operate the public health system safely if further budget cuts were imposed. Among the measures that would have to be introduced in the event of further cuts were the closure of nearly 300 hospital beds and the cancellation of 2,400 high-tech procedures, it said.
It maintained that a full 5 per cent funding cut would necessitate restricting opening hours in five emergency departments around the country.
Efficiencies
While the health service did receive more than €300 million in additional State funding for 2015, with more to be realised from savings and efficiencies, the demand for €200 million more in its allocation for 2016 and 2017 was not met in the official expenditure ceilings published last week.
The Department of Education told the review it needed nearly €500 million in additional State funding this year to deal with upward pressures. The education system ultimately received an increase in its budget of €60 million for next year.
It said it needed €55 million to deal with pupil demographics.
“It is clear that most of the upward pressures outlined are on a scale that simply could not be accommodated within the existing funding envelope, which has historically been adjusted to allow for demographic changes.
“Failure to adjust for demographic change will require increases to the pupil teacher ratio for each of the next three years and beyond.”
The Department of the Environment sought an additional €150 million for current expenditure and €435 million for capital spending.
